Using the Tax Shield Approach, Calculate OCF Given the Following

question 166

Multiple Choice

Using the tax shield approach, calculate OCF given the following information: Sales $885,000; Costs $670,000; Depreciation $120,000. Tax rate is 35%.

• A) 165,500
• B) $171,750
• C) $175,500
• D) $181,750
• E) $185,500

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Definitions:

Self-Interests

The focus on one's own benefit or advantage, sometimes disregarding others.

Job Satisfaction

The level of contentment employees feel about their work, including aspects like nature of work, environment, and compensation.

Monetary Compensation

The financial payment received by employees for their labor, including wages, salaries, bonuses, and other financial benefits.

Absenteeism

Refers to the regular absence of an employee from work, which could be unscheduled and often without good reason.